Dan Sabbagh, Media Editor
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A tax on phone lines could be introduced in an effort to try and extend the reach of super-fast broadband into the countryside.
A £6 a year tax on every phone line in the country is part of the plan outlined in the Digital Britain White Paper to stimulate the development future fibre optic services.
Asked if people would be willing to pay the new levy, Lord Carter of Barnes, the communications minister, said: “How will the public react? Well, we’ll find out.”
The new tax would generate an estimated £150 million a year and is aimed as a stimulus to help BT or Virgin Media pay for the infrastructure. But with the bill for extending fibre optic into the countryside expected to run into many billions, it is unclear if it will be enough to ensure the project's success.
Only a minority of households can access super-fast broadband today, but BT and Virgin Media are in the process of ensuring about 12.5 million homes, around half the country, will be able to connect to the service by 2012. Both companies say it is not cost-effective to connect the rest of the country.
Super-fast broadband, running at speeds of over 10 megabits a second, allows people to watch multiple channels of high definition television and download films in minutes. As as speeds rise films will be downloadable in seconds.
The key points of the White Paper include:
*All homes to have broadband of at least 2 megabits by 2012, with £200 million from the BBC licence fee to be used to fund extension to rural areas.
*“Fourth generation” fast mobile internet services to be introduced subject to mobile phone companies agreeing to clear the relevant portions of radio spectrum.
*Digital radio to become the sole national standard with FM and AM radio stations to be switched off by the end of 2015
*Internet providers to introduce a string of technical measures to stop persistent illegal downloaders. Ofcom will have reserve powers to force internet providers to censor pirate websites and suspend connections of people who infringe copyright.
*Support given to a prospective merger between Channel 4 and the BBC’s commercial arm, with the aim of safeguarding Channel 4’s future. Deal depends on both broadcasters reaching agreement.
* Proposal that BBC to lose monopoly of licence fee with up to £130 million to be made available to support regional and local news on ITV from 2013. Children’s programmes for channels other than the BBC may also benefit from this money.
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